The proportion of small and medium-sized enterprises (SMEs) accessing financial resources through the banking system and other formal sources accounts for only 25 per cent.
To achieve the GDP growth target of 8 per cent, the banking system must inject about VNĐ2.5 quadrillion to the economy, equivalent to a credit growth of 16 per cent.
The new decree also regulates that the total share ownership of foreign investors at a Vietnamese non-bank credit institution will also not be allowed to exceed 50 per cent of the institution’s charter capital.
According to SBV’s data, bad debts of commercial banks as of December 31, 2024 were more than VNĐ733.9 trillion, an increase of 3.4 per cent compared to the end of 2023
The credit growth quota system, which puts a cap on the credit expansion of each bank, has been maintained by the SBV since 2011, when Việt Nam’s economy was experiencing hyperinflation stemming from excessive money supply.
The State Bank of Vietnam (SBV) completed the compulsory transfer of four vulnerable banks, CB, Oceanbank, DongA Bank and GPBank to Vietcombank, MB, HDBank, and VPBank, respectively.
The provinces in Region 4 are important geographical locations, with Lào Cai and Hà Giang bordering with China to the North, and Vĩnh Phúc and Phú Thọ bordering with Hà Nội to the South.
To gain the Government’s target of 8 per cent GDP growth this year, the SBV sets a higher credit growth this year at 16 per cent, against 15 per cent last year. It means VNĐ2.5 quadrillion (US$78 billion) will be injected into the...